Paramount’s £80bn takeover of Warner Brothers a step closer after EU approval | Media

Paramount Skydance’s £80bn acquisition of Warner Brothers is a step closer to happening after receiving conditional approval from the European Union.

The European Commission said Paramount’s offer to end a film distribution joint venture with Universal Pictures alleviated its concerns about the potential merger. As part of its commitments in the EU, Paramount has 13 months from the date the agreement was signed to withdraw from the venture.

“These commitments fully address the competition concerns identified by the commission by ensuring that the combined entity’s films are not jointly distributed with Universal or Disney films,” EU competition regulators said in a statement.

They also said Paramount must not, directly or indirectly, “enter into any agreement or understanding with Universal for the co-distribution of films in the AEA” for a 10-year period.

Paramount signed the deal in February after beating Netflix in a bidding war.

If the deal goes ahead, the combined company will control a wide range of media assets, including CNN, Warner Brothers Pictures, TNT Sports and the HBO Max streaming service.

Despite receiving the green light in the EU, the transaction faces tougher challenges in the US. Last week, a US court ordered Paramount Skydance to pause the deal, which was approved by the US Department of Justice after a 12-state coalition led by California argued that the merger would irreparably harm competition.

US President Donald Trump has made clear he is interested in what the merger would mean for CNN, the broadcaster he has frequently criticized. Paramount CEO David Ellison is the son of Oracle co-founder Larry Ellison, a close Trump ally.

A hearing will be held on August 3 in the USA regarding the preliminary injunction decision that will prevent the transaction from being closed before the final decision.

A prolonged disruption would cost the company financially, and Paramount would be liable to pay Warner Brothers shareholders around £5 million for each day the merger is delayed after September 30.

The deal is also the target of a lawsuit from the Writers Guild of America, which says it would endanger writers’ livelihoods and threaten the health of the U.S. entertainment industry.

The deal faces another potential hurdle in the United Kingdom, which said last month it might intervene because of the potential impact on news, children’s television and streaming services.

“Following discussions with the parties and independent investigations, my department has written today on my behalf to the current and proposed owners of Warner Bros Discovery informing them that I am considering intervening,” culture minister Lisa Nandy said in a written ministry statement.